The mixed development of 11 family homes and bungalows in Boldon Colliery is on the site of former local authority garages and a day centre next to Wilfred Street in the village.
Isos has worked with South Tyneside Council to develop the site.
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The main contractor for the scheme is NB Clark from Morpeth and the architects are Chris Brummitt Architects.
Lea Smith, development and regeneration manager for Isos Housing, said: "It's so important for communities like Boldon Colliery that a landlord such as Isos keeps building affordable homes.
"It's not just about those residents who move into the new homes, it’s about the properties they leave behind, which will help their neighbours find the homes they need.
"We also know that for the local economy to thrive, employers need to know there are good quality, affordable homes and services available for their staff."
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